Forex Chart Of The Day: SILVER At Major Resistance Of $21.75

The recent USD weakness has helped the price of Silver rally into the major range lows. Now the price is at this major resistance could we see the price turn bearish?

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SILVER Analysis

The price of Silver has benefited from the recent USD weakness in the markets. The Federal Reserve Chairman Powell is expected to announce the decision to slow the pace of tightening in his upcoming speech which could have a strong impact on the USD. If the market takes this as a dovish move the price of Silver could trade higher, if however the opposite occurs and the market has priced in the dovish tone expected then we could see the USD strengthen seeing Silver prices trade lower. 

Looking at the monthly time frame first we can see that the price rejected the key $18.25 handle we mentioned back in July. Since then the price has traded higher into the range lows at $21.75. This level could hold as resistance as it holds confluence with bearish channel highs which formed back in December 2020. A break below the current lows would offer sellers opportunities to trade to the lows and the bearish channel support. Alternatively, if the price were to break higher the market will likely push the price to the next resistance level at $24.50.

Did you see our USD Index Analysis? You can see it here.

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About The Author

Jonathan Kibbler

Jon Kibbler, our Senior Market Analyst, boasts over a decade of trading experience. He specializes in dissecting the intricacies of financial markets and sharing his expertise with precision. Jon’s insights have been featured at renowned events and platforms like Coindex, Forex Analytix, and Forex.com.

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